Page 36 - GHES-3-2

Global Health Economics and
Sustainability

PERSPECTIVE ARTICLE
Are random price generators useful for health

policy processes and analysis? effectiveness
of random price generators in health policy

processes and analysis

Christine C. Huttin *
1,2
1 Department Business and Economics, University Aix Marseille, IAE School of management, Aix en
Provence, France
2 Endepusresearch, R&D Operations, Cambridge, Mass, United States of America and Endeplux,
Luxembourg

Abstract
This paper discusses why using random price generators in an economic model
Academic editor: for medical markets may be useful. It summarizes the different steps for the
Mihajlo Jakovljevic M.D. Ph.D. MAE development of the model and describes an original contribution of the physicians’
*Corresponding author: choice model with random drug prices applied to Type 2 diabetes in the US.
Christine C Huttin Pharmaceutical markets have been supply-driven to boost life science and medical
(christine.huttin@univ-amu.fr; technologies; however, with the widening inequalities inside national health systems
chxyinfo@endepusresearchinc.
com) and the global agenda for universal health coverage, more economic research is
being done to strengthen the analysis of demand for healthcare services. Research,
Citation: Huttin, C.C. (2025). Are
random price generators useful especially, examines more disaggregated levels of demand systems to understand
for health policy processes and the heterogeneity of physicians’ choices and better capture patient needs. It can also
analysis? effectiveness of random be an approach to calibrate supply and demand adjustments in medical markets.
price generators in health policy This paper argues that choice modeling is particularly relevant, using random price
processes and analysis. Global
Health Econ Sustain, 3(2):28-36. generators in a structural model where a demand approach is useful. If validated
https://doi.org/10.36922/ghes.3579 by additional experimental studies, this first study by Professors Huttin & Hausman
Received: May 6, 2024 (2021) could be used in advanced value assessment frameworks. Random price
generators on medical markets could also be tested with additional models that fit
1st revised: June 6, 2024
oligopolistic market structures (e.g., models for differentiated product markets such
2nd revised:August 23, 2024 as the Berry–Levinsohn–Pakes model). It may also help with a policy analysis process
Accepted: September 9, 2024 that addresses major disruptive transformations of market dynamics, evolving
boundaries in science, fast digitalization, and artificial intelligence-based information
Published online: November 6,
2024 systems.
Copyright: © 2024 Author(s).
This is an Open-Access article Keywords: Choice model; Medical markets; Randomness process and nature; Random
distributed under the terms of the
Creative Commons Attribution price generators; Mixed logit models
License, permitting distribution,
and reproduction in any medium,
provided the original work is
properly cited. 1. Introduction
Publisher’s Note: AccScience
Publishing remains neutral with This paper continues a series of methodological contributions to develop an economic
regard to jurisdictional claims in model for medical markets, especially suited for structural models of markets such
published maps and institutional
affiliations. as the US. The use of random price parameters for medical products and services is

Volume 3 Issue 2 (2025) 28 https://doi.org/10.36922/ghes.3579